The consumer price index rose 5.4% year-over-year
The Dow closed 107 points lower today, as inflation data weighed on the market. The U.S. Labor Department reported a higher-than-expected year-over-year rise of 5.4% in the consumer price index (CPI) -- its fastest pace in almost 13 years. The S&P 500 and Nasdaq also pulled back to finish in the red, after both eking out record intraday highs, with the latter pushed lower by a jump in the 10-year Treasury yield by 5 basis points. In other economic data, the core CPI, excluding food and energy, made its sharpest move higher since 1991, rising 4.5%, and the U.S. federal budget deficit narrowed to $174 billion in June. Meanwhile, earnings season kicked off with financial stocks today, and investors are looking ahead to more big-name bank reports coming up this week.
Continue reading for more on today's market, including:
- NOK options surged after pre-earnings update.
- Behind Goldman Sachs' blowout earnings beat.
- Plus, analyst eyes growth for HBI; another notable bank report; and options bulls target PEP.
The Dow Jones Average (DJI - 34,888.79) lost 107.4 points, or 0.3%. Of the 30 Dow components, Visa (V) saw the biggest jump, adding 1.9%, while Boeing (BA) paced the laggards, shedding 4.2%.
Meanwhile, the S&P 500 Index (SPX - 4,369.21) fell 15.4 points, or 0.4%. The Nasdaq Composite (IXIC - 14,677.65) lost 55.6 points, or 0.4%.
Lastly, the Cboe Volatility Index (VIX - 17.12) lost 1 point, or 5.9%.
- European Union (EU) regulators do not have the same endorsements toward all vaccines, which could affect travel this summer. (MarketWatch)
- This Big Tech name hasn't seen the same success as its peers on the charts lately, but the FAANG member's quarterly report is early next week. (CNBC)
- Wells Fargo predicts growth ahead for this retailer.
- Blue-chip bank stock sees call surge.
- Soda stock pops after a blowout earnings report.
Oil Hits Two-Year Highs
Oil prices rose today despite increased uncertainty, with all eyes on tomorrow's domestic crude inventories data, which is expected to show an eighth-straight weekly decline. August-dated crude added $1.15, or nearly 1.6%, to settle at $75.25 a barrel, sending oil prices back above the $75 level and marking their highest settlement since October 2018.
Gold futures finished higher to conclude a somewhat volatile day as investors digested today's sharp rise in consumer prices. August-dated gold rose $4, or 0.2%, to settle at $1,809.90 an ounce.